Judge rejects latest challenge with
Virginia poised for second casino referendum

Voters in Richmond, Virginia, will get the chance to vote on the potential development of a casino resort within the city once again after a Circuit Court judge cleared the path for a second referendum. 

This comes after Judge W. Reilly Marchant, who previously ruled to include a referendum on November’s ballot, rejected calls by charitable gaming group Good Lions to remove this from the purview of voters.

Last year, a potential $565m development was cast aside after a little over 51 per cent of voters chose to reject the One Casino + Resort, which was proposed by Urban One in partnership with Peninsula Pacific Entertainment.

The project is now being forwarded alongside Churchill Downs after the operator purchased “substantially all of the assets” of the latter in a $2.48bn agreement. 

In forwarding its challenge, Good Lions argued that should the project be approved, the charitable income that it currently receives “will either disappear entirely or be seriously undermined should the referendum move forward and be successful.”

In response, the Richmond city council suggested that this opposition “lacks standing because it does not, and cannot, assert any claim or defence that is germane to this proceeding.”

Rejecting the motion, Marchant ruled: “Arguably Good Lions’ alleged future loss of gaming revenue might be fairly traceable to the 2019 legislation of the Virginia General Assembly allowing casino gambling, but that government action is not what Good Lions seeks to challenge. 

“The intervenor moves this court to grant them leave to intervene in this matter to challenge the Council’s unconstitutional  process for selecting a vendor. 

“We look forward to sharing our vision for the project and the many citywide benefits it will deliver for all Richmonders”

Michael Kelly, spokesperson for the proposed resort casino project

“Good Lions’ challenge to the City Council’s no bid/no notice process for selecting an operator of the casino, where Good Lions does not seek to be the operator, is not a challenge of government action fairly traceable to its expected loss of revenue.” 

It is claimed that the resort would contribute $30m in total tax revenue for the city per year, as well as a one-time $26.5m payment upon passage and 1,300 jobs. 

The casino would feature a hotel with live entertainment and conference venues, dining options, gaming facilities with slot games, table games, a sportsbook and green spaces. 

Responding to this latest ruling, Michael Kelly, spokesperson for the proposed resort casino project, commented: “We’re glad this matter is now resolved. 

“This resort and entertainment complex will be one of the largest private sector investments in the city of Richmond in decades, creating 1,300 good paying jobs and $30m in annual tax revenue to invest in a stronger city, all without a single penny of tax breaks, incentives, or public funds. 

“We look forward to sharing our vision for the project and the many citywide benefits it will deliver for all Richmonders.”

Richmond is the final of five cities across the state awaiting the potential go-ahead to develop a casino resort, with passage across fellow Virginian regions having previously taken place.  

Voters across Bristol, Norfolk, Portsmouth and Danville, all issued the go-ahead alongside operating partners of Hard Rock International, Pamunkey Indian Tribe, Rush Street Gaming and Caesars, respectively. Each was approved in local referenda in November 2020.

Speaking to local media, Mayor Levar Stoney stated: “I am pleased to see Judge Marchant rule in favour of the City of Richmond. If approved this November, the proposed destination resort and casino will provide 1,300 good-paying jobs and an estimated $30m in annual revenue to tackle our community’s greatest needs. 

“On top of adding to Richmond’s record development and growth, this project will change the economic trajectory of south side for years to come.”